0001433642
false
0001433642
2024-05-23
2024-05-23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 23, 2024
Hamilton Lane Inc
orporated
(Exact Name of Registrant as specified in its charter)
Delaware 001-38021 26-2482738
(State or other jurisdiction of incorporation) (Commission File No.) (IRS Employer Identification No.)
110 Washington Street, Suite 1300
Conshohocken, PA 19428
(Address of principal executive offices) (Zip Code)
(
610
)
934-2222
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share HLNE The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 ((s)230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 ((s)240.12b-2 of this
chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act.
-------------------------------------------------------------------------------
Item 2.02. Results of Operations and Financial Condition.
On May 23, 2024, Hamilton Lane Incorporated issued a press release and
detailed presentation announcing its financial results for the fourth quarter
and full fiscal year ended March 31, 2024. A copy of the press release and
presentation are furnished as Exhibit 99.1 to this Current Report on Form 8-K
and are incorporated by reference into this Item 2.02 as if fully set forth
herein.
The information included in, or furnished with, this report shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press Release of Hamilton Lane Incorporated dated May 23, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
-------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HAMILTON LANE INCORPORATED
Date: May 23, 2024
By: /s/ Lydia A. Gavalis
Name: Lydia A. Gavalis
Title: General Counsel and Secretary
HAMILTON LANE INCORPORATED REPORTS STRONG FOURTH FISCAL QUARTER AND FISCAL
YEAR 2024 RESULTS, WITH MANAGEMENT AND ADVISORY FEES GROWING BY 22% AND ASSETS
UNDER MANAGEMENT GROWING BY 11% YEAR-OVER-YEAR
CONSHOHOCKEN, PENN. - May 23, 2024 -
Leading private markets asset management firm Hamilton Lane Incorporated
(Nasdaq: HLNE) today reported its results for the fourth fiscal quarter and
full fiscal year ended March 31, 2024.
FISCAL YEAR 2024 HIGHLIGHTS
.
Assets under management
- Total assets under management of $124 billion grew 11% year-over-year.
Fee-earning assets under management increased 15% to $66 billion over the same
period.
.
Revenue
- Management and advisory fees increased 22% to $451.9 million for fiscal 2024.
.
Carried Interest
- Unrealized carried interest balance of $1.2 billion was up 19% year-over-year.
.
Earnings per share
- GAAP EPS of $3.69 on $140.9 million of GAAP net income for fiscal 2024.
.
Dividend
- Declared a quarterly dividend of $0.49 per share of Class A common stock to
record holders at the close of business on June 14, 2024 that will be paid on
July 5, 2024. The target full-year dividend of $1.96 represents a 10% increase
from the prior fiscal year dividend.
Hamilton Lane issued a full detailed presentation of its fourth quarter and
full fiscal year 2024 results, which can be accessed by clicking
here
.
Hamilton Lane Co-CEO Erik Hirsch commented: "Fiscal year 2024 was another
strong year for Hamilton Lane. We continue to execute well across the entirety
of the business and our growth remains robust. Our market continues to offer
significant opportunity and we remain intensely focused on delivering for our
clients and shareholders."
Conference Call
Hamilton Lane will discuss fourth quarter and full fiscal year 2024 results in
a webcast and conference call today, Thursday, May 23, 2024, at 11:00 a.m.
Eastern Time.
For access to the live event via the webcast, visit Hamilton Lane's
Shareholders website by
clicking here
at least 15 minutes prior to the start of the call. This feature will be in
listen-only mode.
-------------------------------------------------------------------------------
A replay of the webcast will be available approximately two hours after the
live broadcast for a period of one year and can be accessed in the same manner
as the live webcast at the
Shareholders
page of Hamilton Lane's website.
About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment
firms globally, providing innovative solutions to institutional and private
wealth investors around the world. Dedicated exclusively to private markets
investing for more than 30 years, the firm currently employs approximately 700
professionals operating in offices throughout North America, Europe, Asia
Pacific and the Middle East. Hamilton Lane has $920.6 billion in assets under
management and supervision, composed of $124.4 billion in discretionary assets
and $796.2 billion in non-discretionary assets, as of March 31, 2024. Hamilton
Lane specializes in building flexible investment programs that provide clients
access to the full spectrum of private markets strategies, sectors and
geographies. For more information, please visit
www.hamiltonlane.com
or follow Hamilton Lane on LinkedIn:
https://www.linkedin.com/company/hamilton-lane/
.
Forward-Looking Statements
Some of the statements in this release may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Words such as "will," "expect," "believe,"
"estimate," "continue," "anticipate," "intend," "plan" and similar expressions
are intended to identify these forward-looking statements. Forward-looking
statements discuss management's current expectations and projections relating
to our financial position, results of operations, plans, objectives, future
performance and business. All forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that may cause
actual results to be materially different, including risks relating to: our
ability to manage growth, fund performance, competition in our industry,
changes in our regulatory environment and tax status; market conditions
generally; our ability to access suitable investment opportunities for our
clients; our ability to maintain our fee structure; our ability to attract and
retain key employees; our ability to manage our obligations under our debt
agreements; defaults by clients and third-party investors on their obligations
to fund commitments; our exposure and that of our clients and investors to the
credit risks of financial institutions at which we and they hold accounts; our
ability to comply with investment guidelines set by our clients; our ability
to successfully integrate acquired businesses with ours; our ability to manage
risks associated with introducing new types of investment structures, products
or services or entering into strategic partnerships; our ability to manage
redemption or repurchase rights in certain of our funds; our ability to
manage, identify and anticipate risks we face; our ability to manage the
effects of events outside of our control; and our ability to receive
distributions from Hamilton Lane Advisors, L.L.C. to fund our payment of
dividends, taxes and other expenses.
The foregoing list of factors is not exhaustive. For more information
regarding these risks and uncertainties as well as additional risks that we
face, you should refer to the "Risk Factors" detailed in Part I, Item 1A of
our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and in
our subsequent reports filed from time to time
-------------------------------------------------------------------------------
with the Securities and Exchange Commission, including our upcoming Form 10-K
for fiscal 2024. The forward-looking statements included in this release are
made only as of the date hereof. We undertake no obligation to update or
revise any forward-looking statement as a result of new information or future
events, except as otherwise required by law.
Shareholder Contact
John Oh
joh@hamiltonlane.com
+1 610 617 6026
Media Contact
Kate McGann
kmcgann@hamiltonlane.com
+1 240 888 4078
-------------------------------------------------------------------------------
Fiscal Year 2024 Fourth Quarter and Full Year Results May 23, 2024
-------------------------------------------------------------------------------
2Hamilton Lane | Global Leader in the Private Markets Today's Speakers Erik
Hirsch Co-CEO Jeff Armbrister Chief Financial Officer John Oh Head of
Shareholder Relations
-------------------------------------------------------------------------------
3Hamilton Lane | Global Leader in the Private Markets Business Performance
Financial Results Dividend . Assets under management and fee-earning assets
under management were $124 billion and $66 billion, respectively, as of March
31, 2024, increases of 11% and 15%, respectively, compared to March 31, 2023 .
Management and advisory fees increased 22% compared to fiscal 2023 USD in
millions except per share amounts Q4 FY24 FY24 vs. FY23 Management and
advisory fees $123.7 $451.9 22 % GAAP net income $48.4 $140.9 29 % GAAP EPS
$1.26 $3.69 23 % Adjusted net income1 $74.6 $211.5 18 % Non-GAAP EPS1 $1.38
$3.92 17 % Fee Related Earnings1 $56.1 $193.3 22 % Adjusted EBITDA1 $91.1
$272.5 5 % . Declared a quarterly dividend of $0.49 per share of Class A
common stock to record holders at the close of business on June 14, 2024
1Adjusted net income, non-GAAP earnings per share, Fee Related Earnings and
Adjusted EBITDA are non-GAAP financial measures. For the reconciliations of
our non-GAAP financial measures to the most directly comparable GAAP financial
measures and for the reasons we believe the non-GAAP measures provide useful
information, see pages 20 and 21 of this presentation. Period Highlights
-------------------------------------------------------------------------------
4Hamilton Lane | Global Leader in the Private Markets Total Assets Under
Management/Advisement ($B) Total AUA Total AUM 2005 2006 2007 2008 2009 2010
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3/31/24 $0
$200 $400 $600 $800 $1,000 Y-o-Y Growth AUM: 11 % AUA: 7 % $921B AUM & AUA 1
CAGR: 18% $6 $7 $11 $13 $16 $19 $22 $24 $30 $32 $35 $40 $50 $59 $66 $76 $98
$108 $36 $51 $77 $79 $95 $81 $129 $147 $147 $189 $205 $292 $374 $410 $422 $581
$753 $724 $796 $124 Growing Asset Footprint & Influence 1Data as of calendar
year end 12/31 unless otherwise noted. Numbers may not tie due to rounding.
$120 $783
-------------------------------------------------------------------------------
5Hamilton Lane | Global Leader in the Private Markets Y-o-Y Drivers of Growth
Total Fee-Earning Assets Under Management ($B) $25 $26 $31 $35 $38 $14 $16 $18
$23 $28 Customized Separate Accounts Specialized Funds Mar-20 Mar-21 Mar-22
Mar-23 Mar-24 $0 $10 $20 $30 $40 $50 $60 $70 $80 Fee-Earning AUM growth
continues and annual fee rates are stable CAGR: 14% Total Management Fee
Revenues as a % of Average FEAUM *Numbers may not tie due to rounding
Customized Separate Accounts: . New client wins . Client re-ups Specialized
Funds: . Fundraising 6th secondary fund, 9th credit-oriented fund, 2nd
infrastructure fund, and evergreen funds $42 $57 $39 $49 $66 Fee-Earning AUM
Driving Revenues .56% .59% .63%.60%
-------------------------------------------------------------------------------
6Hamilton Lane | Global Leader in the Private Markets Customized Separate
Accounts Specialized Funds Advisory Services Diverse mix of existing and
prospective clients seeking to further or establish relationships with
Hamilton Lane . $2.9 billion year-over-year increase in FEAUM . +80% of our
gross contributions during the last 12 months came from existing clients AUM
AUM & AUA Drivers AUA Select funds in market: . Secondary fund . Credit-oriented
fund . Infrastructure fund . Evergreen funds . $5.5 billion year-over-year
increase in FEAUM . Closings during Q4 FY24: Secondary fund: $802M Typically
larger clients with wide-ranging mandates which include technology-driven
reporting, monitoring and analytics services and consulting services;
opportunity set continues to be robust . $51 billion year-over-year increase
in AUA
-------------------------------------------------------------------------------
Financial Highlights
-------------------------------------------------------------------------------
8Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns
$529 $554 FY23 FY24 U S D in M ill io ns $157 $102 FY23 FY24 U S D in M ill io
ns $372 $452 FY23 FY24 Management and Advisory Fees Incentive Fees Total
Revenues YTD YTD Y-o-Y Change: 22% YTD Y-o-Y Change: 5% Y-o-Y Change: (35)% .
Recurring management and advisory fees represented an average of over 80% of
total revenues over the past five fiscal years . Y-o-Y increase of 22% . $12.3
million in retroactive fees from our latest secondary fund in the quarter .
Incentive fees derived from a highly diversified pool of assets and funds .
Unrealized carried interest of $1.2 billion as of 3/31/24 diversified across
3,000+ assets and 100 funds . Timing of realizations unpredictable . Total
revenues increased by 5%, driven by management and advisory fees U S D in M
ill io ns $218 $452 FY19 FY24 Long-Term Growth U S D in M ill io ns $34 $102
FY19 FY24 Long-Term Growth CAGR: 16% U S D in M ill io ns $252 $554 FY19 FY24
Long-Term Growth CAGR: 17% CAGR: 24% Consolidated Revenue Strong growth across
management and advisory fees
-------------------------------------------------------------------------------
9Hamilton Lane | Global Leader in the Private Markets Period Ending V eh ic le
s U S D in M illions Unrealized Carried Interest $1,191 $1,022 $1,221 92 90
100 Unrealized Carried Interest Vehicles in Unrealized Carry Position Mar-22
Mar-23 Mar-24 0 20 40 60 80 100 120 $0 $250 $500 $750 $1,000 $1,250 $1,500
Unrealized Carry by Age < 5 years 46% 5-8 years 27% 8-12 years 23% > 12
years 4% Unrealized Carried Interest
-------------------------------------------------------------------------------
10Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns
$34 $141 FY19 FY24 Net Income Attributable to HLI Adjusted EBITDA1 Fee Related
Earnings1 U S D in M ill io ns $260 $273 FY23 FY24 U S D in M ill io ns $109
$141 FY23 FY24 U S D in M ill io ns $118 $273 FY19 FY24 U S D in M ill io ns
$159 $193 FY23 FY24 U S D in M ill io ns $90 $193 FY19 FY24 Y-o-Y Change: 29%
1Adjusted EBITDA and Fee Related Earnings are non-GAAP financial measures. For
the reconciliations of our non-GAAP financial measures to the most directly
comparable GAAP financial measures and for the reasons we believe the non-GAAP
measures provide useful information, see pages 20 and 21 of this presentation.
Y-o-Y Change: 5% Y-o-Y Change: 22% CAGR: 17% CAGR: 18% Consolidated Earnings
Stable long-term growth YTD YTD YTD Long-Term Growth Long-Term Growth
Long-Term Growth . $48M in net income attributable to HLI for the quarter .
Y-o-Y increase of 5% driven by growth in management and advisory fees
partially offset by lower incentive fees . Y-o-Y growth of 22% . Long-term
double digit growth in Fee Related Earnings CAGR: 32%
-------------------------------------------------------------------------------
11Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns
Investments $154 $208 $374 $514 $588 $632 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Mar-24 $0 $100 $200 $300 $400 $500 $600 $700 . For 3/31/2024, the total
investment balance consisted primarily of: ~$408M in investments in our funds
~$224M in technology related and other investments . Modest leverage . $196M
of debt as of 3/31/2024 U S D in M ill io ns Leverage $171 $214 $196 Mar-22
Mar-23 Mar-24 $0 $50 $100 $150 $200 $250 Other Key Items Strong balance sheet
with investments in our own products and a modest amount of leverage...
-------------------------------------------------------------------------------
Appendix
-------------------------------------------------------------------------------
13Hamilton Lane | Global Leader in the Private Markets Three Months Ended
March 31, Year Ended March 31, (Dollars in thousands except share and per
share amounts) 2023 2024 % Change 2023 2024 % Change Management and advisory
fees $95,692 $123,704 29 % $371,874 $451,936 22 % Incentive fees 17,096 52,961
210 % 149,931 101,906 (32) % Consolidated variable interest entities related:
Incentive fees - - N/A 6,948 - (100) % Total revenues 112,788 176,665 57 %
528,753 553,842 5 % Compensation and benefits 40,177 64,266 60 % 198,412
204,004 3 % General, administrative and other 23,329 28,495 22 % 89,395
103,403 16 % Consolidated variable interest entities related: - General,
administrative and other (35) 17 N/A 906 617 (32) % Total expenses 63,471
92,778 46 % 288,713 308,024 7 % Equity in income of investees 12,581 14,822 18
% 5,088 34,893 586 % Interest expense (2,590) (2,788) 8 % (8,617) (11,169) 30
% Interest income 950 1,891 99 % 1,789 5,427 203 % Non-operating gain (loss)
6,635 (1,526) (123) % (5,243) (2,515) (52) % Consolidated variable interest
entities related: Equity in income of investees 425 938 121 % 1,455 1,598 10 %
Unrealized gain 440 - (100) % 4,773 3,034 (36) % Interest expense - - N/A -
(6) N/A Interest income 336 - (100) % 3,325 4,581 38 % Total other income
(expense) 18,777 13,337 (29) % 2,570 35,843 1,295 % Income before income taxes
68,094 97,224 43 % 242,610 281,661 16 % Income tax expense 16,659 20,399 22 %
55,425 54,454 (2) % Net income 51,435 76,825 49 % 187,185 227,207 21 % Less:
Income attributable to non-controlling interests in general partnerships 213
363 70 % 986 534 (46) % Less: Income attributable to non-controlling interests
in Hamilton Lane Advisors, L.L.C. 19,701 28,102 43 % 71,027 80,835 14 % Less:
Income attributable to redeemable non-controlling interests in Hamilton Lane
Alliance Holdings I, Inc. - - N/A 5,617 - (100) % Less: Income attributable to
non-controlling interests in consolidated funds 435 - (100) % 435 4,980 1,045
% Net income attributable to Hamilton Lane Incorporated $31,086 $48,360 56 %
$109,120 $140,858 29 % Basic earnings per share of Class A common stock $0.84
$1.26 50 % $3.05 $3.72 22 % Diluted earnings per share of Class A Common stock
$0.82 $1.26 54 % $3.01 $3.69 23 % Weighted-average shares of Class A common
stock outstanding - basic 37,206,876 38,273,558 37,059,654 37,858,177
Weighted-average shares of Class A common stock outstanding - diluted
53,785,158 38,418,650 53,698,681 53,902,467 Condensed Consolidated Statements
of Income (Unaudited)
-------------------------------------------------------------------------------
14Hamilton Lane | Global Leader in the Private Markets 1 Adjusted EBITDA and
Non-GAAP earnings per share are non-GAAP financial measures. For the
reconciliations of our non-GAAP financial measures to the most directly
comparable GAAP financial measures, see page 20. 2 Incentive fee related
compensation includes incentive fee compensation expense and bonus related to
carried interest that is classified as base compensation. 3 Represents
corporate income taxes at our estimated statutory tax rate of 23.8% and 23.4%
for the years ended March 31, 2023 and 2024, respectively, applied to adjusted
pre-tax net income. The 23.8% is based on a federal tax statutory rate of
21.0% and a combined state income tax rate net of federal benefits of 2.8%.
The 23.4% is based on a federal tax statutory rate of 21.0% and a combined
state income tax rate net of federal benefits of 2.4%. Three Months Ended
March 31, Year Ended March 31, (Dollars in thousands except share and per
share amounts) 2023 2024 % Change 2023 2024 % Change Adjusted EBITDA1
Management and advisory fees $95,692 $123,704 29 % $371,874 $451,936 22 %
Revenue related to consolidated funds 61 - (100) % 61 394 546 % Total expenses
63,471 92,778 46 % 288,713 308,024 7 % Less: Incentive fee related
compensation2 (8,120) (25,157) 210 % (74,374) (48,406) (35) % Consolidated VIE
related general, administrative and other expenses - - N/A (846) (566) (33) %
Non-operating income related compensation (313) - N/A (367) (59) (84) %
Management fee related expenses 55,038 67,621 23 % 213,126 258,993 22 % Fee
Related Earnings $40,715 $56,083 38 % $158,809 $193,337 22 % Fee Related
Earnings Margin 43 % 45 % 43 % 43 % Incentive fees 17,096 52,961 210 % 156,879
101,906 (35) % Incentive fees attributable to non-controlling interests - -
N/A (302) - N/A Incentive fee related compensation2 (8,120) (25,157) 210 %
(74,374) (48,406) (35) % Non-operating income related compensation (313) - N/A
(367) (59) (84) % Interest income 950 1,891 99 % 1,789 5,427 203 %
Equity-based compensation 3,134 2,906 (7) % 9,950 12,133 22 % Depreciation and
amortization 1,842 2,411 31 % 7,442 8,186 10 % Adjusted EBITDA $55,304 $91,095
65 % $259,826 $272,524 5 % Adjusted EBITDA Margin 49 % 52 % 49 % 49 % Non-GAAP
earnings per share1 Net income attributable to Hamilton Lane Incorporated
$31,086 $48,360 56 % $109,120 $140,858 29 % Income attributable to
non-controlling interests in Hamilton Lane Advisors, L.L.C. 19,701 28,102 43 %
71,027 80,835 14 % Income tax expense 16,659 20,399 22 % 55,425 54,454 (2) %
Adjusted pre-tax net income 67,446 96,861 44 % 235,572 276,147 17 % Adjusted
income taxes3 (15,884) (22,306) 40 % (56,066) (64,618) 15 % Adjusted net
income $51,562 $74,555 45 % $179,506 $211,529 18 % Adjusted shares outstanding
53,785,158 53,994,746 53,698,681 53,902,467 Non-GAAP earnings per share $0.96
$1.38 44 % $3.34 $3.92 17 % Non-GAAP Financial Measures
-------------------------------------------------------------------------------
15Hamilton Lane | Global Leader in the Private Markets Three Months Ended
March 31, Year Ended March 31, (Dollars in thousands) 2023 2024 % Change 2023
2024 % Change Management and advisory fees Specialized funds $52,169 $76,039
46 % $196,268 $261,012 33 % Customized separate accounts 30,434 32,124 6 %
117,763 128,826 9 % Advisory 5,712 5,838 2 % 24,785 24,229 (2) % Reporting and
other 5,622 6,413 14 % 24,792 24,711 0 % Distribution management 697 1,075 54
% 2,560 5,054 97 % Fund reimbursement revenue 1,058 2,215 109 % 5,706 8,104 42
% Total management and advisory fees $95,692 $123,704 29 % $371,874 $451,936
22 % Reporting and other: 8% Customized separate accounts: 29% Specialized
funds: 58% Advisory: 5% Year Ended March 31, 2024 Management and Advisory Fees
-------------------------------------------------------------------------------
16Hamilton Lane | Global Leader in the Private Markets Three Months Ended
March 31, Year Ended March 31, (Dollars in thousands) 2023 2024 % Change 2023
2024 % Change Incentive fees Direct equity funds $2,368 $3,943 67 % $60,472
$7,387 (88) % Secondary funds 8,933 29,419 229 % 36,326 41,464 14 % Direct
credit funds 1,497 3,147 110 % 9,135 7,872 (14) % Evergreen funds 1,172 5,530
372 % 5,241 15,404 194 % Other specialized funds 1,427 4,745 233 % 13,986
17,861 28 % Customized separate accounts 1,699 6,177 264 % 31,719 11,918 (62)
% Incentive fees $17,096 $52,961 210 % $156,879 $101,906 (35) % As of March
31, 2023 December 31, 2023 March 31, 2024 YoY % Change QoQ % Change Allocated
carried interest Secondary Fund II $359 $130 $42 (88) % (68) % Secondary Fund
III 30,084 28,370 450 (99) % (98) % Secondary Fund IV 121,750 117,690 112,008
(8) % (5) % Secondary Fund V 144,739 147,372 162,124 12 % 10 % Secondary Fund
VI 5,209 27,436 35,841 588 % 31 % Co-investment Fund II 17,047 17,143 20,041
18 % 17 % Co-investment Fund III 51,139 40,241 42,443 (17) % 5 % Co-investment
Fund IV 111,318 132,875 150,097 35 % 13 % Equity Opportunities Fund V 11,252
24,779 35,832 218 % 45 % Evergreen funds 95,477 120,290 153,709 61 % 28 %
Other specialized funds 113,627 117,504 133,127 17 % 13 % Customized separate
accounts 320,249 351,848 375,774 17 % 7 % Total allocated carried interest
$1,022,250 $1,125,678 $1,221,488 19 % 9 % Incentive Fees
-------------------------------------------------------------------------------
17Hamilton Lane | Global Leader in the Private Markets (Dollars in millions)
March 31, 2023 December 31, 2023 March 31, 2024 YoY % Change QoQ % Change
Assets under management / advisement Assets under management $111,901 $119,953
$124,406 11 % 4 % Assets under advisement 744,770 782,892 796,173 7 % 2 %
Total assets under management /advisement $856,671 $902,845 $920,579 7 % 2 %
Fee-earning assets under management Customized separate accounts Balance,
beginning of period $33,089 $36,234 $36,924 12 % 2 % Contributions 3,204 1,743
2,896 (10) % 66 % Distributions (1,725) (1,000) (2,478) 44 % 148 % Foreign
exchange, market value and other 116 (53) 232 100 % N/A Balance, end of period
$34,684 $36,924 $37,574 8 % 2 % Specialized funds Balance, beginning of period
$21,776 $25,187 $26,175 20 % 4 % Contributions 961 1,273 2,053 114 % 61 %
Distributions (233) (370) (261) 12 % (29) % Foreign exchange, market value and
other 158 85 208 32 % 145 % Balance, end of period $22,662 $26,175 $28,175 24
% 8 % Total Balance, beginning of period $54,865 $61,421 $63,099 15 % 3 %
Contributions 4,165 3,016 4,949 19 % 64 % Distributions (1,958) (1,370)
(2,739) 40 % 100 % Foreign exchange, market value and other 274 32 440 61 %
1,275 % Balance, end of period $57,346 $63,099 $65,749 15 % 4 % Assets Under
Management
-------------------------------------------------------------------------------
18Hamilton Lane | Global Leader in the Private Markets (Dollars in thousands)
March 31, 2023 March 31, 2024 Assets Cash and cash equivalents $99,686
$114,634 Restricted cash 4,804 4,985 Fees receivable 47,140 108,291 Prepaid
expenses 9,817 11,073 Due from related parties 7,186 8,150 Furniture, fixtures
and equipment, net 28,425 33,013 Lease right-of-use assets, net 62,327 62,425
Investments 530,921 603,697 Deferred income taxes 233,912 261,887 Other assets
46,784 34,435 Assets of consolidated variable interest entities: Cash and cash
equivalents 12,062 - Investments 57,044 28,575 Other assets 435 35 Total
assets $1,140,543 $1,271,200 Liabilities and equity Accounts payable $4,559
$4,505 Accrued compensation and benefits 24,190 35,979 Accrued members'
distributions 15,723 23,815 Accrued dividend 15,049 17,628 Debt 213,533
196,159 Payable to related parties pursuant to tax receivable agreement
174,702 201,422 Lease liabilities 78,817 79,033 Other liabilities (includes
$14,228 and $13,071 at fair value) 32,856 36,700 Liabilities of consolidated
variable interest entities: Other liabilities 6,922 1 Total liabilities
566,351 595,242 Total equity 574,192 675,958 Total liabilities and equity
$1,140,543 $1,271,200 Condensed Consolidated Balance Sheets (Unaudited)
-------------------------------------------------------------------------------
19Hamilton Lane | Global Leader in the Private Markets Year Ended March 31,
(Dollars in thousands) 2022 2023 2024 Operating activities Net income $247,253
$187,185 $227,207 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 5,495 7,443 8,186 Change
in deferred income taxes 23,944 20,433 16,697 Change in payable to related
parties pursuant to tax receivable agreement (5,332) (3,251) 318 Equity-based
compensation 7,404 9,950 12,133 Equity in income of investees (78,813) (5,088)
(34,893) Net realized (gain) loss on sale of investments (11,936) (12,230) 288
Fair value adjustment of other investments (47,487) (20,730) 333 Proceeds
received from partnerships 46,817 15,981 28,254 Non-cash lease expense 9,890
7,460 8,696 Gain on sale of intangible asset - 2,771 - Impairment of other
investment - 43,289 - Other (815) (2,813) 706 Changes in operating assets and
liabilities (22,370) (25,252) (41,931) Consolidated variable interest entities
related (4,527) 1,441 (105,142) Net cash provided by operating activities
$169,523 $226,589 $120,852 Investing activities Purchase of furniture,
fixtures and equipment $(8,526) $(4,747) $(11,073) Cash paid for acquisition
of business (10,096) (1,500) - Purchase of convertible notes - (2,535) (8,000)
Purchase of investments (18,997) (37,025) (6,352) Proceeds from sale of
investments 12,623 13,478 1,343 Distributions received from investments 12,739
1,406 - Proceeds from sale of intangible assets - - 3,305 Distributions
received from Partnerships 15,010 14,438 14,147 Contributions to Partnerships
(73,240) (84,557) (57,722) Consolidated variable interest entities related -
278,954 (57,832) Net cash (used in) provided by investing activities $(70,487)
$177,912 $(122,184) Financing activities Proceeds from offering $73,833
$43,686 $201,671 Purchase of membership interests (73,833) (43,686) (201,671)
Borrowings of debt, net of deferred financing coss 24,925 31,682 - Repayments
of long term debt (1,840) (4,496) (2,500) Drawdown on revolver - 40,000 10,000
Repayment of revolver (15,000) (25,000) (25,000) Repurchase of Class B common
stock (1) - (2) Repurchase of Class A shares for employee tax withholding
(3,485) (2,325) (3,507) Proceeds received from issuance of shares under
Employee Share Purchase Plan 1,860 1,937 2,253 Payments to related parties
pursuant to the tax receivable agreement (23,170) (10,345) (11,123) Dividends
paid (49,630) (72,409) (65,406) Members' distributions paid (47,711) (63,444)
(43,872) Consolidated variable interest entities related 836 (259,746) 143,556
Net cash (used in) provided by financing activities $(113,216) $(364,146)
$4,399 (Decrease) increase in cash and cash equivalents, restricted cash, and
cash and cash equivalents held at consolidated variable interest entities
(14,180) 40,355 3,067 Cash and cash equivalents, restricted cash, and cash and
cash equivalents held at consolidated variable interest entities at beginning
of the period 90,377 76,197 116,552 Cash and cash equivalents, restricted
cash, and cash and cash equivalents held at consolidated variable interest
entities at end of the period $76,197 $116,552 $119,619 Condensed Consolidated
Statements of Cash Flows (Unaudited)
-------------------------------------------------------------------------------
20Hamilton Lane | Global Leader in the Private Markets Reconciliation from Net
Income Year Ended March 31, Three Months Ended March 31, Year Ended March 31,
(Dollars in thousands except share and per share amounts) 2019 2024 2023 2024
2023 2024 Net income attributable to Hamilton Lane Incorporated $33,573
$140,858 $31,086 $48,360 $109,120 $140,858 Income attributable to
non-controlling interests in general partnerships 564 534 213 363 986 534
Income attributable to non-controlling interests in Hamilton Lane Advisors,
L.L.C. 64,860 80,835 19,701 28,102 71,027 80,835 Income attributable to
non-controlling interests in Hamilton Lane Alliance Holdings I, Inc. - - - -
5,617 - Income attributable to non-controlling interests in consolidated funds
- 4,980 435 - 435 4,980 Incentive fees (34,406) (101,906) (17,096) (52,961)
(156,879) (101,906) Incentive fee related compensation1 14,983 48,406 8,120
25,157 74,374 48,406 Consolidated VIE related general, administrative and
other expenses - 566 - - 846 566 Revenue related to consolidated funds - 394
61 - 61 394 Non-operating income related compensation - 59 313 - 367 59
Interest income (255) (10,008) (1,285) (1,891) (5,114) (10,008) Interest
expense 3,039 11,175 2,590 2,788 8,617 11,175 Income tax expense 30,560 54,454
16,659 20,399 55,425 54,454 Equity in income of investees (7,202) (36,491)
(13,006) (15,760) (6,543) (36,491) Contingent compensation related to
acquisition 5,100 - - - - - Non-operating (gain) loss (20,915) (519) (7,076)
1,526 470 (519) Fee Related Earnings $89,901 $193,337 $40,715 $56,083 $158,809
$193,337 Depreciation and amortization 2,500 8,186 1,842 2,411 7,442 8,186
Equity-based compensation 6,382 12,133 3,134 2,906 9,950 12,133 Incentive fees
34,406 101,906 17,096 52,961 156,879 101,906 Incentive fees attributable to
non-controlling interests (725) - - (302) - Incentive fee related
compensation1 (14,983) (48,406) (8,120) (25,157) (74,374) (48,406)
Non-operating income related compensation - (59) (313) - (367) (59) Interest
income 255 5,427 950 1,891 1,789 5,427 Adjusted EBITDA $117,736 $272,524
$55,304 $91,095 $259,826 $272,524 Non-GAAP earnings per share reconciliation
Net income attributable to Hamilton Lane Incorporated $31,086 $48,360 $109,120
$140,858 Income attributable to non-controlling interests in Hamilton Lane
Advisors, L.L.C. 19,701 28,102 71,027 80,835 Income tax expense 16,659 20,399
55,425 54,454 Adjusted pre-tax net income 67,446 96,861 235,572 276,147
Adjusted income taxes2 (15,884) (22,306) (56,066) (64,618) Adjusted net income
$51,562 $74,555 $179,506 $211,529 Adjusted shares outstanding 53,785,158
53,994,746 53,698,681 53,902,467 Non-GAAP earnings per share $0.96 $1.38 $3.34
$3.92 1 Incentive fee related compensation includes incentive fee compensation
expense and bonus related to carried interest that is classified as base
compensation. 2 Represents corporate income taxes at our estimated statutory
tax rate of 23.8% and 23.4% for the years ended March 31, 2023 and 2024,
respectively, applied to adjusted pre-tax net income. The 23.8% is based on a
federal tax statutory rate of 21.0% and a combined state income tax rate net
of federal benefits of 2.8%. The 23.4% is based on a federal tax statutory
rate of 21.0% and a combined state income tax rate net of federal benefits of
2.4%. Non-GAAP Reconciliation
-------------------------------------------------------------------------------
21Hamilton Lane | Global Leader in the Private Markets Adjusted EBITDA is an
internal measure of profitability. We believe Adjusted EBITDA is useful to
investors because it enables them to better evaluate the performance of our
core business across reporting periods. Adjusted EBITDA represents net income
excluding (a) interest expense on our outstanding debt, (b) income tax
expense, (c) depreciation and amortization expense, (d) equity-based
compensation expense, (e) non-operating (loss) gain and (f) certain other
significant items that we believe are not indicative of our core performance.
Fee Related Earnings ("FRE") is used to highlight earnings from recurring
management fees. FRE represents net income excluding (a) incentive fees and
related compensation, (b) interest income and expense, (c) income tax expense,
(d) equity in income of investees, (e) non-operating (loss) gain and (f)
certain other significant items that we believe are not indicative of our core
performance. We believe FRE is useful to investors because it provides
additional insight into the operating profitability of our business. FRE is
presented before income taxes. Non-GAAP earnings per share measures our
per-share earnings excluding certain significant items that we believe are not
indicative of our core performance and assuming all Class B and Class C units
in HLA were exchanged for Class A common stock in HLI. Non-GAAP earnings per
share is calculated as adjusted net income divided by adjusted shares
outstanding. Adjusted net income is income before taxes fully taxed at our
estimated statutory tax rate and excludes any impact of changes in carrying
amount of our redeemable non-controlling interest. Adjusted shares outstanding
for the years ended March 31, 2023 and 2024 are equal to weighted-average
shares of Class A common stock outstanding - diluted. We believe adjusted net
income and non-GAAP earnings per share are useful to investors because they
enable them to better evaluate total and per-share operating performance
across reporting periods. Our assets under management ("AUM"), as presented in
these materials, comprise the assets associated with our customized separate
accounts and specialized funds. AUM does not include the assets associated
with our distribution management services. We classify assets as AUM if we
have full discretion over the investment decisions in an account. We calculate
our AUM as the sum of: (1) the net asset value of our clients' and funds'
underlying investments; (2) the unfunded commitments to our clients' and
funds' underlying investments; and (3) the amounts authorized for us to invest
on behalf of our clients and fund investors but not committed to an underlying
investment. Management fee revenue is based on a variety of factors and is not
linearly correlated with AUM. However, we believe AUM is a useful metric for
assessing the relative size and scope of our asset management business. Our
assets under advisement ("AUA") comprise assets from clients for which we do
not have full discretion to make investments in their account. We generally
earn revenue on a fixed fee basis on our AUA client accounts for services
including asset allocation, strategic planning, development of investment
policies and guidelines, screening and recommending investments, monitoring
and reporting on investments and investment manager review and due diligence.
Advisory fees vary by client based on the amount of annual commitments,
services provided and other factors. Since we earn annual fixed fees from the
majority of our AUA clients, the growth in AUA from existing accounts does not
have a material impact on our revenues. However, we view AUA growth as a
meaningful benefit in terms of the amount of data we are able to collect and
the degree of influence we have with fund managers. Fee-earning assets under
management (Fee-earning "AUM" or "FEAUM") is a metric we use to measure the
assets from which we earn management fees. Our fee-earning AUM comprise assets
in our customized separate accounts and specialized funds from which we derive
management fees that are generally derived from applying a certain percentage
to the appropriate fee base. We classify customized separate account revenue
as management fees if the client is charged an asset-based fee, which includes
the majority of our discretionary AUM accounts but also includes certain
non-discretionary AUA accounts. Our fee-earning AUM is equal to the amount of
capital commitments, net invested capital and net asset value of our
customized separate accounts and specialized funds depending on the fee terms.
The vast majority of our customized separate accounts and specialized funds
earn fees based on commitments or net invested capital, which are not affected
by market appreciation or depreciation. Therefore, revenues and fee-earning
AUM are not significantly affected by changes in market value. Our
calculations of fee-earning AUM may differ from the calculations of other
asset managers, and as a result, this measure may not be comparable to similar
measures presented by other asset managers. Our definition of fee-earning AUM
is not based on any definition that is set forth in the agreements governing
the customized separate accounts or specialized funds that we manage. Hamilton
Lane Incorporated ("HLI"), a Delaware corporation, was formed for the purpose
of completing an initial public offering ("IPO") and related transactions in
order to carry on the business of Hamilton Lane Advisors, L.L.C. ("HLA") as a
publicly-traded entity. As of the closing of our IPO on March 6, 2017, HLI
became the sole managing member of HLA. Terms
-------------------------------------------------------------------------------
22Hamilton Lane | Global Leader in the Private Markets Some of the statements
in this presentation may constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and the Private Securities Litigation Reform
Act of 1995. Words such as "will", "expect", "believe", "estimate",
"continue", "anticipate", "intend", "plan", and similar expressions are
intended to identify these forward-looking statements. Forward-looking
statements discuss management's current expectations and projections relating
to our financial position, results of operations, plans, objectives, future
performance and business. All forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that may cause
actual results to be materially different, including risks relating to: our
ability to manage growth, fund performance, competition in our industry,
changes in our regulatory environment and tax status; market conditions
generally; our ability to access suitable investment opportunities for our
clients; our ability to maintain our fee structure; our ability to attract and
retain key employees; our ability to manage our obligations under our debt
agreements; defaults by clients and third-party investors on their obligations
to fund commitments; our exposure and that of our clients and investors to the
credit risks of financial institutions at which we and they hold accounts; our
ability to comply with investment guidelines set by our clients; our ability
to successfully integrate acquired businesses with ours; our ability to manage
risks associated with introducing new types of investment structures, products
or services or entering into strategic partnerships; our ability to manage
redemption or repurchase rights in certain of our funds; our ability to
manage, identify and anticipate risks we face; our ability to manage the
effects of events outside of our control; and our ability to receive
distributions from Hamilton Lane Advisors, L.L.C. to fund our payment of
dividends, taxes and other expenses. The foregoing list of factors is not
exhaustive. For more information regarding these risks and uncertainties as
well as additional risks that we face, you should refer to the "Risk Factors"
detailed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal
year ended March 31, 2023 and in our subsequent reports filed from time to
time with the Securities and Exchange Commission, including our upcoming Form
10-K for fiscal 2024. The forward-looking statements included in this
presentation are made only as of the date presented. We undertake no
obligation to update or revise any forward-looking statement as a result of
new information or future events, except as otherwise required by law. Values
appearing in this presentation that are whole numbers are rounded
approximations. As of May 23, 2024 Disclosures
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}
{graphic omitted}